BMO Capital Markets has started coverage of D-Wave Quantum Inc. (QBTS) with an Outperform rating and a $35 price target, implying about 89% total return from the stock’s $18.56 reference price. Top analyst Harsh Kumar argues that D-Wave stands out because the quantum computing company already generates commercial revenue and is building across both quantum annealing and gate-model systems.
Kumar sees D-Wave’s dual-platform strategy as the key part of the investment case. The company has historically focused on quantum annealing, which is designed to solve optimization problems, but its 2026 acquisition of Quantum Circuits added dual-rail gate-model technology. Kumar estimates that move expanded D-Wave’s addressable market from roughly $100 billion to $220 billion for annealing alone to about $450 billion to $850 billion across the broader quantum market.
On Friday, QBTS shares rose a significant 8.46%, closing at $20.39. However, the stock is down about 2.2% in pre-market trading.
BMO Sees Commercial Revenue as a Key Advantage
D-Wave is already selling access to its quantum systems and has also begun selling complete machines. Kumar says the company has sold two systems so far and expects it to sell about two to three per year starting in 2027. The company had more than 70 commercial customers in 2025, including about two dozen companies in the Forbes 2000.
Kumar expects that commercialization to start showing more clearly in the numbers. Kumar forecasts revenue rising from $25 million in 2025 to $34 million in 2026 and $71 million in 2027. The bigger opportunity could come from gate-model computing, where D-Wave plans to increase from 17 physical qubits today to 181 by 2028, with commercial gate-model systems expected around that time.
The technology is also central to Kumar’s bullish view.
Kumar says D-Wave’s dual-rail architecture can detect certain errors automatically, potentially allowing the system to reach useful logical-qubit performance with fewer physical qubits. Kumar believes that could translate into lower costs, faster computing, and better reliability compared with traditional single-qubit gate systems.
The $35 Target Comes with a High Valuation
The bullish target also rests on aggressive assumptions. BMO values D-Wave at about 180 times estimated 2027 sales, based on the expectation that commercialization succeeds and revenue growth accelerates sharply from the second half of 2026.
Profitability is still far away in BMO’s model. The firm expects a non-GAAP net loss of about $92 million in 2026 and $140 million in 2027, along with free cash flow of negative $161 million and negative $147 million, respectively. BMO believes D-Wave has enough cash to fund its roadmap for the next several years but warns that a faster cash burn or tougher financing conditions would increase the risk.
For the stock, the next proof points are fairly concrete.
BMO is watching for stronger sales of the Advantage2 system, the planned integration of gate-model computing into D-Wave’s existing software and cloud tools, and evidence that its newer gate-model technology can move toward commercialization. Those milestones will matter because the $35 target assumes D-Wave can turn its technical lead into much faster revenue growth over the next few years.
Is QBTS Stock a Good Buy Now?
Overall, D-Wave Quantum has a Strong Buy consensus, based on 15 analysts’ ratings in the past three months. The average QBTS stock price target is $35.79, implying a 75.51% upside from the current price.
